Nepal Flash Floods: Rebuilding May Cost Up To $5 Billion, Says Finance Minister

Nepal’s devastating flash floods could cost between $4 billion and $5 billion to rebuild, Finance Minister Swarnim Wagle has estimated, as rescue and recovery operations continue across areas hit by the disaster. The projected reconstruction bill would be equivalent to nearly a tenth of Nepal’s economy, according to the minister.

The disaster struck on Wednesday after a glacier collapse unleashed a massive torrent of water, rock, ice, mud and debris through river systems near the Nepal-Tibet border. The flooding caused widespread destruction in border communities, damaging or destroying roads and bridges and affecting major hydropower facilities.

The combined death toll in Nepal and Tibet had reached 676 by Saturday, while nearly 3,000 people remained unaccounted for, according to updated reports. Nepal’s disaster authorities reported 669 deaths in the country and 2,426 people missing, while more than 3,700 people had been rescued as emergency operations continued.

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Rescue teams have been working in difficult mountainous terrain, with helicopters being used to evacuate survivors and transport relief supplies. Operations have also focused on people trapped at hydropower facilities, while international assistance has begun arriving from countries including India, China, Australia and Japan.

Wagle said the $4 billion-$5 billion figure was an initial estimate and that authorities were still assessing the full scale of losses and damage. He also noted that the projected reconstruction requirement could be lower than the roughly $9 billion needed after Nepal’s 2015 earthquake, which remains the country’s most destructive recorded disaster.

The floods are expected to place significant pressure on Nepal’s economy, which relies heavily on remittances, tourism and hydropower. The damage to hydropower infrastructure is particularly significant, with affected projects accounting for more than 12% of Nepal’s electricity-generating capacity, according to the latest assessment.

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